Nearly a decade ago, Daewoo Matiz abruptly pulled out of India when it faced problems at its parent company in Korea. The move left nearly one lakh cars owners in the lurch. Although General Motors stepped in to help out with spares, but by then most owners had come to rely on the grey market or the local workshops for maintenance and repair.

Although car companies are diligent in offering post-sales support to its customers, the Daewoo incident was an eye-opener. At a time when com-panies are on the fast-track launching new models, they are also phasing out old models. So what is the service level commitment for these models?

The largest car manufacturer in the country, Maruti Suzuki, has assured buyers that spares will continue to be available at its authorized service stations. Mayank Kaushik, Manager (MT-9), Sup-ply Chain Division, Maruti Suzuki, says, “While we have an extensive service network for our cars, we also offer spares for those models which are phased out. All manufacturers support phased-out models as long as it is allowed to run on the roads, which means it has to follow norms such as BS III or IV, among others.”

One company that has learnt its lessons well is global giant Fiat. In the late 90s, the company faced plenty of heat from customers for poor spare parts supply, among other issues. Today the company has emerged stronger with a slew of models and is putting its after-sales service strategy in place. On its after-sales service, Pankaj Chandak, Assistant Vice-President (Parts & Services) at Fiat India Auto-mobiles Ltd says his company stocks about 80 per-cent of spares required for repairs of the vehicles which are older than five years. “Even for vehicles that have been phased out, our policy is to contin-ue offering spares for atleast 7-10 years. We offer almost 80 percent of the parts for the older cars as most users do not need to change the balance 20 percent of the parts like seats or roof lines.”

Lending A HandManaging the logistics of spares is the responsibil-

Dear Readers,

Logistics is a back-room function. This is a commonly held perception among logistics

executives both new and old at the job. That perception is changing, and changing fast. Not so long ago, Dell consumers could order a laptop of a particular design off a given list, lending an extra degree of uncertainty to the logistician’s job, till someone smart came up with the idea of interchangeable lids. Granted, smart product managers can save their logistics team from customization blues with smart ideas. But there are some areas of logistics, which have direct bearing on a company’s brand equity, like spare-parts logistics and service logistics.

With auto companies launch-ing new models and discarding old ones with abandon, where does that leave the car user who is stuck with a discontinued model? Providing spare-parts logistics for such users is the job of the logistics team — this has a direct bearing on the the consumers’ brand loyalty towards the company.

Speaking of brand loyalty, Re-search In Motion’s service logistics, particularly, in Mumbai leaves a bit to be desired, if I go by costumer feedback, a recent media report and my own experience. Blackberry is a product that epitomizes corner-cubicle status for its users, but the experience that they get (according to what one hears) at these service outlets could burst that bubble. Read the story on page 2 to learn more.

Your’s truly,Aanand PandeyEditor, LogisticsWeek

How do car manufacturers and ancillary companies attend to the logis-tics of spares, even after the vehicle model has been phased out?

Jayashree MendesMumbai

BlackBerry Ka Jawaab Nahin

Event ReportDriving It With ForceSiemens executives explain how Drive Technologies have helped its customers increase productivity and provide bet-ter services.

PAGE 5

The performance of BlackBerry phones have not matched the grand claims of its brand promos. Its service logistics needs a face-lift.

`25logisticsweek.com

September 16–30, 2011

Here To Serve

PAGE 2

ity of manufacturers, as they are answerable to customers. According to a spokesperson of an auto ancillary industry, “Most manu-facturers make more than one model of cars. So even if the model is phased out, it does not mean that maintaining spares are also discontinued. For instance, one variant of spark plugs would be fitted in several models, and the components supplier would continue to manufacture it, and would also be available to consumers.”

The Sales Head of an MNC auto compa-ny explains the role that companies play in sourcing spares. “Before the emergence of all the new breed of manufacturers, we had few companies like Hindustan Motors, Premier, and Maruti Suzuki. The respon-sibility of stocking spares lay with them. Today, spares are available with dealers in the replacement market.”

All vehicle manufacturers outsource parts from ancillaries, locally and glob-ally. A decision to change specifications of newer models could make older parts defunct. “Users then resort to searching and sourcing for parts on the internet. There is also the secondary market,” adds

the Sales Head of the MNC. The lack of spares stocks with the or-

ganized sector has given rise to the grey market. Original Equipment Manufactur-ers (OEMs) cannot be concerned with con-stantly supplying or making provisions of spares for old models. They would much rather have the customers sell the old car and buy a new one. The availability of quick finance schemes is also working in their favor.

A few years ago, the dearth of spares presented an opportunity to dealers in Taiwan and Korea. Having identified fast-moving parts and knowing that a particu-lar vehicle model would be phased-out, they began exporting spares and devel-oped tie-ups with local Indian dealers and began dumping spares into the country. But this seems to have lessened over time.

Mr. Chandak says that globally manu-facturers are expected to continue supply-ing spares for as long as 7-10 years, which is what Indian companies follow. “Here, in case of spares for phased-out models, the OEMs are asked to fix the car or support in the most suitable manner.”

Editor’s NoteIntimate Logistics

2 September 16—30, 2011 www.logisticsweek.com

BlackBerry Ka Jawaab Nahin

Life is not all song for users of the BlackBerry smart phone. More often than not, the exasperated BlackBerry buyer has to track back to the seller or the nearest service center to find out what’s wrong with his prized exhibit. It’s not delivering as promised. It’s not functioning as it ought to. It has already run into corpo-ral problems.

A glimpse of the service lo-gistics of BlackBerry can be acquired from a visit to the ser-vice center at Khar (for the more popular GSMs) in the western region of Mumbai. At any given time, the entire seating area is occupied by numerous people waiting for their complaints to be heard. The person at the counter touts that the center is constantly buzzing with human activity ranging from 150-200 complaints. Does that ring a warning bell?

Consider the users of a BlackBerry. Most of them are professional consumers, or the up-market youth. When you go to the outlet, you are handed a small chit with a number. It requires a waiting of at least two hours before your number is called out. The only solace is that although the room is crowded, it is cool.

While most complaints range from software to track-pad or display issues, a spokes-person at the counter assures the individual that it can be sorted out in a matter of half-an-hour. Questioned about the high rate of software problems, he shoots back, “Doesn’t your PC or laptop ever crash? If it runs on software, it is bound to crash.” Possibly, but only when it happens in moderation.

An e-mail to RIM India on the number of users in Mumbai and the ample number of service centers required per density did not generate any response. However, according to the Min-istry of Telecommunications website, there were approxi-mately 114,000 BlackBerry us-ers across the country early this

Jayashree MendesMumbai

The BlackBerry hand-set came as a status symbol. Now the owners are having second thoughts. The performance of the highly rated phones have not matched the grand claims of its brand promos. The service logistics needs a face-lift. Tell you, it is some time…

year. Considering a conservative figure of 30 percent would be Mumbai-based, it is still 34,000 users, and growing.

The BlackBerry India website mentions the presence of four service centers for the Western Mumbai region – Borivali, Da-dar, Andheri, and Khar. Repeat-ed calls made to the first two ser-vice centers elicit no response. The Andheri one functions for CDMA users. That leaves GSM users with one single repair center in Mumbai at Khar. The system leaves one feeling hu-miliated. It means that owners across Mumbai will have to tra-verse to this one point in Khar or Andheri.

The Service LogisticsIt is tolerable if one has to wait for a couple of hours and know that the problem will soon be resolved. But what if it is a serious issue? The service center receives your complaint and asks you to hand over the set for repairs and wait for days and weeks. Is it worth the wait?

The service centers listed on the BlackBerry India website are not exactly service centers, but mere collection centers. The centers have been set up to collect the defective piece and check for the problem. They are also allowed to conduct L1 level of repairs that are non-invasive and are mainly confined to of-fering software support and upgrades. For the hardware glitches (requiring a higher lev-el of repair) the service centers will send the phone to a point in Bangalore.

As the service centers are barred from conducting any repair that is invasive, RIM In-dia has its own arrangements. Globally, the company has tie-ups with a few companies for conducting chip level and component level repairs. In India, it is Flextronics Global Services.

The official distribution and post-sales partner to RIM India for BlackBerry GSM phones is Bangalore-based national dis-tributor Redington India. The tie-up helped RIM India im-

mensely as Redington immedi-ately took charge of sales, ser-vice, and the reverse logistics, and took the smartphones to over 75 cities. In terms of ser-vice, RIM India mentions the presence of 112 service centers across the country on its web-site, of which 27 are manned by Redington.

Speaking of the general poli-cies that Redington has for its vendors, Shaik Abdul Nassar, GM (Supply Chain), Redington Service, says, “In most cases, re-pairs are carried out by replace-ment of parts/sub-assemblies. The turnaround time ranges from one hour (for walk-in con-sumer customers, enterprise) to five days for remote locations.”

However, the spokesperson at the Khar service center (and other service centers across the country) has a different story to tell. They cite a minimum of 10-12 days if the phone needs intense repair.

Although phones under warranty are repaired free of charge, for those outside war-

ment is not available RRLC offers a credit note for the in-voice value.

In terms of transportation, depending on the volume at each service center the pick-up is daily or twice a week. Red-ington has tied up with about 10 national courier companies that have a presence in Tier-1 and Tier-2 cities. It employs the services of national courier companies such as Blue Dart, DTDC, and First Flight, and the services of 25 regional courier companies such as Skylark, Sa-hara, and Airnet to cater to Tire-3 cities. The courier com-panies support daily pick-ups from more than 3.000 cities across the country.

But just like any other busi-ness, reverse logistics does have its share of risks. As the products travel through third-party cou-rier services they could be prone to operational losses such as go-ing out to a wrong address or the delay in ensuring timely pick-up and data flow till the end point. There is also the worry of send-ing out wrong parts and losses and damages that occur during transit. Mr. Nassar says that re-verse logistics also has its share of thefts and damages, and war-ranty validation dispute.

But, all said and done, a BlackBerry is a BlackBerry.

ranty, the user is not only ex-pected to pay for the cost of re-pair, but an additional `200 for courier charges.

What Happens At The Back-end?The issues of dead-on-arrival (DoA)/warranty replacements are looked after by Reding-ton’s Reverse Logistics Centre (RRLC), an extended arm of Redington Supply Chain Man-agement. For DoA products, the Redington-affiliated ser-vice centers across the country register their call with RRLC through a toll free number. RRLC then checks the point of purchase as per the vendor process registers and approves the call. This is then approved by mail and a copy of it is sent to the respective warehouse in charge. Based on the avail-ability of stock, a replacement is given through the DC. The approval is also communicated to the customer on his official mobile number as registered by him with RRLC. If replace-

RepoRt

When you go to the outlet, you are handed a small chit with a number. It requires a waiting of at least two hours before your number is called out.

3September 16—30, 2011 www.logisticsweek.com

Prof. Carlos Cordon, Prof. Winter Nie

Japan’s devastating earthquake, tsunami and nuclear accident have served as a wake-up call across the world to show just how fragile global supply can be.

Until recently, many corporations entrusted their supply chain operations to middle level management. The chief purchasing officer usually reported to the CFO, CIO or COO. CEOs had relatively little exposure in dealing directly with supply chains. Often, the purchasing officers paid more attention to cost and product quality than to the risk factors in sourcing. The earthquake in Japan is changing all of that.

The global supply chain is a rational attempt to remain “asset light.” In other words, focusing on a company’s core competencies and outsourcing the rest by taking advantage of low-cost sourcing. No one questions the value of the concept or of just-in-time manufacturing, but it is increasingly apparent that the approach works best when the global economy is stable, protectionism is not prevalent, and there are few natural disasters. The global economy has become increasingly integrated, and the growing frequency and intensity of natural catastrophes, such as what took place in Japan need to be factored into strategic planning.

All of these factors have changed the rules of the game and created a radically new environment.

From “cost and value” to a “cost, value and risk model”: Most companies see their mission in terms of producing the highest value for customers at the lowest possible cost. An example of miscalculated risk is BP’s inadequate assessment of the potential danger from a deepwater oil leak in the Gulf of Mexico. Since BP had subcontracted its engineering to Halliburton, it assumed that the risk of a spill would be borne by Halliburton. As the public saw it, BP’s management was ultimately responsible.

Lego, the Danish toymaker, took a more enlightened approach. The company pondered outsourcing its production to an Asian supplier specialized in plastic injection molding for computer printers. An investigation revealed that the two companies had radically different philosophies concerning the molds. The Asian supplier favored low cost, light-weight molds that were changed frequently as new printer designs came on line. In contrast, Lego, which depends on all its components interconnecting, sometimes uses the same molds for 40 years or more. A minor variation in the specifications risked making Lego’s bricks unusable leading to poor results for the company. In Lego’s case, it made more sense to in-source its production, even if it was slightly more expensive.

Another variable of risk is expensive credit in the post-financial crisis world. Large corporations

enjoy preferential credit because of their size and dependability. Smaller companies are riskier propositions so credit is likely to be limited. For smaller suppliers, this can mean bankruptcy if the cash flow dries up, and for a large corporation that can spell disaster. Large corporations can no longer ignore the credit conditions experienced by their key suppliers. At the basic level, major corporations can serve as loan guarantors to see that suppliers stay in business. Enlightened corporations are using their size to negotiate preferential terms for their key suppliers.

Another approach is for a corporation to simply extend credit on its own without going through a bank. When Toshiba wanted to build a new factory to ramp up its production of flash memory, Apple prepaid Toshiba $500 million for its chips so that the company could speed up the project. In the process, Toshiba eventually produced a third of the flash memory that went into the new iPad.

Given the enormous impact of the supply chain on a company’s bottom line, executive input at from the corporation’s management team is important. The transition from mere purchasing to outsourcing requires expertise in managing external relations. It requires a different skill-set and different metrics, as well as a new mindset.http://bit.ly/oqYi7j

Re-Evaluating The Supply Chain Post-Japanese Earthquake Blogs, Journals, Book releases

4 September 16—30, 2011 www.logisticsweek.com

cOMING SOON!

October 2011

India Shipping SummitThe seventh India Shipping Summit will take a fresh look at the mari-time industry’s position, bringing together all key stakeholders and interested international parties for a high-level information exchange.

Profi le for exhibit includes ship equipment, ports, brokers and charters, shipbuilding and repair sectors, maritime, oil majors, crewing and manning, maritime colleges and training institute, government bodies, equipment supply.

Seatrade Communications Limited is organizing the event from October 10 to 12, 2011 at Trident Hotel in Mumbai.

Constru India 2011Constru India 2011 is being organized by Winmark Ser-vices Private Ltd at Mumbai Exhibition Center in Gore-gaon, Mumbai. Construction infrastructure is the second biggest industry in India and it is developing rapidly in the modern times. For the traders involved in the con-struction business, this three day fair to be held from October 12 to 14 will be an opportunity to explore the market and understand the modern trends. This year’s trade fair is the 13th edition of this high profi le event and is much awaited within the trading circles. Constru India 2011 is designed with the intention of promoting

new technologies and products in the market. Mumbai Exhibition Center at Goregaon will play host to the event.

India Electricity 2011India Electricity 2011 is dedicated to the electronics and electrical industry in India. The event has been organized by FICCI over dura-

tion of three days at Pragati Maidan in New Delhi from October 12 to 14, 2011. The objective of the exhibition is to fi nd a way to imple-ment power projects in India with the collaboration of major inves-tors and project developers. Besides an exhibition that will show-case latest trends and technologies in the industry, the event will also include an informative and educating conference. All important topics related with the industry will be discussed and analyzed un-der the guidance of reputed speakers.

Some of the exhibitors expected to attend are from the indus-try of: control & instrumentation, equipment manufacturers, solar power, wind power equipment, hydro power equipment and control devices, pollution control equipment, fi nancial institutions, power transmission equipment, transmission lines and towers, ACRS con-ductors insulators, and power electronics.

International Conclave on Climate ChangeFrom October 12 – 14, 2011 at Hyderabad International Trade Exposition Center (HITEX), International Conclave on Climate Change will focus on Renewable Energy. It will showcase the latest technologies on green products, solutions and renewable energy. This would cut across all sectors of business. The con-cept relies on exhibiting companies appearing as ‘climate art-ists’ each bringing their own mechanical or interactive exposi-tion of technologies, products and solutions which contribute to a climate friendly global society.

Exhibitors at the event will be start-up companies developing renewable energy related products and solutions, energy com-panies, banks and energy efficiency who are interested to get customers in the renewable energy industry.

The event is being organized by Tafcon.

A Few Bright Ideas

The new weatherproof and shock-resistant MO-BOTIX D14 DualDome camera with 6.2 megapixels is a more powerful successor model of the D12 camera. With the two separately adjustable camera modules, each with 3.1 megapixels, the D14 offers a variety of ways to examine a scene since the two modules can be combined to create one image. The D14 has a dig-ital PTZ and no mechanical moving parts.

Equipped with 90° wide angle and tele lenses, the camera can for example, monitor a scene entirely and, at the same time, the tele lens can record por-trait photos in front of the entrance area. The two 90° lenses even allow a 180° recording, for example when monitoring an entire parking lot by one cam-era installed on the wall. And with the digital sensor switching function, the D14 can also be used as a day/night camera since it can be equipped with one color and one black/white module ensuring the most brilliant color during the day and high sensitivity at night.

The D14 includes motion detection that can trig-ger both the recording as well as the alarm notifi -cation via email or VoIP call as a two-way commu-nication. The integrated DVR can hold up to 64 GB memory and record for weeks without a PC. If need-ed, the memory can be extended to terabytes with an external NAS drive.

Heating and cooling are not necessary. As a result, the very low power consumption of about 4 watts via network cable (PoE) reduces investment and op-erating costs and provides an inexpensive backup. A stainless steel vandalism-proof design with 3

mm polycarbonate dome and elegant wall and pole mounts is also available.

Compared to the previous model, the D14 now offers USB and MxBus interfaces for extension mod-ules such as I/O, GPS or RS232. The new, more pow-erful processor in the camera allows higher frame rates of up to 6 megapixel image format. Microphone and speaker are supported by new audio functions that include echo elimination.

The entire recording and playback software is already included in the MOBOTIX D14 camera and is accessible via a Web browser. In addition, either the MxCC Control Center software, which is used for larger projects of up to 1,000 cameras, or the easily-manageable MxEasy software for smaller applica-tions with analyzing, administration and display features are available free of charge.

Dualdome Camera D14 From MOBOTIX TeCHnologY

eVeNtS CALeNDAR

Magellan Navigates With Roadmate 3065 GPS DeviceThe Magellan RoadMate 3065 is a 4.7” navigator starting with Traf-fi c Wakeup, Blue-tooth, OneTouch favorites menu, free lifetime traf-fi c alerts, highway lane assist and built-in AAA TourBook.Traffi c Wakeup powers on a GPS device and provides real-time traffi c updates. It also allows for traffi c infor-mation before starting on the journey.

One can manage hands-free calling and a noise-can-celling microphone with our advanced Bluetooth tech-nology. The GPS navigator provides voice clarity when making calls. The OneTouch favorites menu allows the user to bookmark destinations and searches. The free lifetime traffi c provides real-time traffi c information. The Highway Lane Assist shows realistic highway signs and ensures that drivers choose the correct lane when approaching an upcoming interchange or exit.

The unique, extra-large 4.7” screen provides maps and POI information on an easy-to-read screen that is 17 percent larger than a standard 4.3” screen.

Drivers can keep their eyes on the road because spo-ken street name guidance announces the street name and direction of each turn. QuickSpell narrows the ad-dress and city searches, as one types, making destina-tion entry easy.

5September 16—30, 2011 www.logisticsweek.com

Driving In With Force

Keeping Scores Of Records

The serenity and beauty of the atmosphere perfectly comple-mented the energy, dedication and passion of the speakers at Siemens Smart Drive Technolo-gies Media And Industry Analyst Meet 2011, on September 14, as they spoke about how Siemens helps customers improve Indus-trial productivity and produc-tion that is faster, better, more economical through integrated solutions.

The summit hosted with the senior management representa-tives from Siemens AG and man-agement team from Siemens India, highlighted Siemens AG and Siemens India portfolio. The focus of the summit was Drive Technologies and its products, solutions and services. The ses-sion also emphasized that Drive Technologies division increases productivity in operations by linkage of sustainable technolo-gies from a single source that can help customers achieve higher productivity, efficiency and reliability.

Economical and ecological requirements are on the in-crease throughout every field of industry and technology, ex-erting a impact on production processes and the machinery required to run them. As an in-tegrated technology company, Siemens offers more than just a wide portfolio of products and solutions, explained Dr. Armin Bruck, MD, Siemens Ltd. in his presentation as he gave an overview of the Sie-mens India portfolio.

The various Records and In-formation companies in India came together for the first time to form an association of their own, on August 20, 2011, at Ho-tel Bawa International, Mumbai. 29 delegates attended the event from 22 organizations.

When asked about the neces-sity of the formation of the Asso-ciation, Mr. Soorjaneel Chaterjie, General Manager - Records Man-agement, Crown Records Man-

Pritha DeyMumbai

NewsDeskMumbai

eVeNtS RepoRt

He also underlined the impor-tance of the Drive Technologies Division saying “We support our customers and markets firstly by providing durable, specifically tailored products and solutions to meet the needs of diverse markets with cutting-edge tech-nologies that are innovative and sustainable.”

Speaking of India, he said, “India is huge in diversity and so you have to be close to your customers. To keep a double digit GDP growing, infrastructure is the talk of the day.”

As much as 70 percent of all energy used in industrial facilities is used by electrical drives and motors to drive equipment. This demonstrates how important it is to use energy-efficient drives and motors– and drives and motors from Siemens Drive Technologies Division are designed to conserve resources. Ensuring maximum productivity, efficiency, and reli-ability, Siemens offers compo-nents such as electrical drives, motors, gears and couplings for optimal solutions for a variety of industrial applications.

In creating an integrated so-lution and increasing industrial productivity, Siemens Drive fam-ily plays a significant part. The drive models cover the entire performance spectrum and offer a unified operating concept that is flexible, functional and energy efficient.

The Siemens Drive family ranges from single-axis drives to coordinated drives and multiple-axis and motion-control drives for complex tasks. All drives are modular, scalable, offer a unique level of integration and are thus

able to offer countless benefits for mechanical and plant engi-neering, the process industry, and building technology.

Ralf-Michael Franke, CEO of DT, a Division within the Indus-try Sector of Siemens AG, in his presentation, emphasized the importance of the Indian market and the Division’s local presence for its global business. The Divi-sion’s three-pronged integra-tion approach – integrated drive train, integrated automation, integrated applications and solu-tions – is enriched by important stimuli stemming from the In-dian business.

“Asia is a driving force for our successful path of profitable growth. Mr. Franke said. “Sus-tainable growth is more realis-tic in India than in China,” he added. “Thus, the Division will continue to increase local value creation in India, which will also

enable us to meet the require-ments of our local and global customers doing business in the fast growing economy. With the growing installed base in India, our integrated service approach ensures optimization of operat-ing expense of our customers while keeping productivity high in the productions.”

Robert Wagner, Head, Drive Technologies, said, “Services in India are not yet as important in India as in other developed countries.” He explained that Drive Technology comprises Large Drives, Motion Controls, Mechanical Drives, and, Inside e-Car. “Motion Control is the brain behind everything that turns,” he said. Mr. Wagner also added, “Remote Monitoring Services (one of Siemens’ Value Added Services) will be a very impor-tant part of our services in five years down the line.”

Siemens’ strategy involves a three-pronged integration approach: creating a seamless drive train, integrating it into the Siemens automation world and incorporating it into the corresponding customer ap-plications. This allows Siemens to provide its customers with a range of unique benefits in terms of energy efficiency, reli-ability, and productivity.

Siemens Drive Technologies Division (Nuremberg, Germany) is the world’s leading supplier of products, systems, applica-tions and services for the entire drive train with electrical and mechanical components and motion control systems for pro-duction machinery as well as machine tools.

Drive Technologies serves all segments in manufacturing

CONTINUED ON PAGE 7

CONTINUED ON PAGE 7

A session in motion.

agement, said, “The Association will provide a platform for all companies dealing with record and information management and creating an atmosphere of mutual support, respect and progress.”

Karunakar Rai, National Head - Sales and Business Setup, IL&FS Trust said that the Association would, “contribute to the prog-ress and advancement of this in-dustry, explore and provide solu-tions to various challenges faced by this Industry, encourage and reward new innovations that in-

crease efficiency and reduce cost while serving customers.”

Chandramouli, Founder and Managing Director, Verto Mo-bility Management Services Pvt Ltd., gave a brief introduction of the meeting and requested a few attendees to form a group and chair the meeting. N.S. Bhargava, Chairman & CEO, Shell Tran-source Ltd. and Smita Davda, Di-rector, Navbharat Archive Xpress Pvt. Ltd. kindly accepted to joint-ly chair the meeting.

Srikanth Bhandari, Vice Presi-dent, Data and Record Ware-

housing gave a brief line on the agenda for the day, which was earlier circulated by email to all participants.

The discussion began with ‘Membership Criteria’. The quali-fications required for a company to become a member of the asso-ciation were discussed.

The next point of discussion was Objectives. The objectives of the association finalized were:

1) Promote the Records & In-formation Management Industry

Soorjaneel ChaterjieGeneral Manager - Records Management, Crown Records Management

6 September 16—30, 2011 www.logisticsweek.com

In this section, LW provides a recap of policy decisions of the last fortnight thatimpact various areas of the industry.

Auto Recall, Procurement High On List

auTo reCall PolICYThe Indian g o v e r n m e n t is working on a formal auto recall policy to

improve manufacturing stan-dards in the country.

Joint Secretary (department of heavy industries) Ambuj Sharma announced the setting up of a National Automotive Board (NAB) to be formed in two-three months time.

He added that the ministry is still examining prospects on the set of guidelines to be adopted. It is also considering whether to penalize a manufacturer in such a case.

The NAB would have rep-resentation from all the nodal ministries and automotive bodies such as the Automotive Research Association of India (ARAI). Projects such as the one on National Automotive Test-ing and the R&D Infrastructure Project (Natrip) will fall under its purview.

A recall policy would have to be included under the Mo-

for various ministries and state governments to follow on Com-petition.

Dr. Moily said inputs from state governments will also be considered during the prepa-ration of the fi nal draft for the new national competi-tion policy and after detailed deliberations upon the views and suggestions received from the business fraternity in the country will be posted on the website of the Ministry of Cor-porate Affairs for further com-ments. He hoped that the Cabi-net’s nod will be obtained by the end of this year to pave way for the New Competition Policy next year.

rlYs MoDernIZaTIonTo give fur-ther impetus to Railways’ modernization plans, an Ex-

pert Group has been consti-tuted under the Chairmanship of Sam Pitroda to recommend ways and means to modern-

tor Vehicles Act as it requires consent from other transport-related institutions in the country.

CoMPeTITIon PolICYUnion Corpo-rate Affairs Minister Dr. M. Veerappa Moily has

asked the corporate sector in the country to send their rele-vant and issue specific sugges-tions during the current ex-ercise of initiatives underway in drafting the new national competition policy. The Min-ister chaired the second Con-sultative Meeting on draft Na-tional Competition Policy at FICCI Auditorium.

Dr. Moily said his ministry is seeking to strengthen and re-fi ne India’s competition laws and the strategy involves the drafting of the competition pol-icy, making changes to laws and norms that government depart-ments need to follow. Once in place, the policy will be a guide

ize Indian Railways to meet the challenges of economic growth, the aspirations of the common man, the needs of changing technology and the expanding market while at the same time ensuring adequate focus on addressing social and strategic require-ments of the country in con-sonance with Indian Railways’ national aspirations.

The terms of Reference of the Committee would involve outlining strategies for mod-ernization of Railways with a focus on track, signaling, rolling stock, stations and terminals; using ICT for im-proving effi ciency and safety; augmenting existing capaci-ties of Railways through indig-enous development; reviewing projects and addressing PPP issues.

The Committee will inter alia address issues connected with organization, management and resource mobilization and pro-fessionalization of manpower on Indian Railways.

The committee is expected

to submit its report in Decem-ber 2011.

PuBlIC ProCureMenTTo infuse trans-parency in gov-ernance, the Centre would be bringing in a

new bill, Public Procurement Bill, in the winter session, an-nounced Union Minister for Corporate Affairs Dr. M Veer-appa Moily.

Though the Indian govern-ment sources goods worth around `11 lakh crore every year, there is no proper policy to govern it. While smaller econo-mies like Nepal and Afghani-stan have well laid out norms to check procurement, India does not have the system. The intro-duction of the bill is expected to bring down corruption by near-ly 50 percent.

Moily said that the govern-ment will fi nalize a new compe-tition policy by this November and it will become a law by De-cember 2012.

poLICY UpDAteS

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7September 16—30, 2011 www.logisticsweek.com

Auto Recall, Procurement High On List2) Qualitative Aspect (* Bench

Marking)3) Awareness to Media4) Inspection / CertificationIt was proposed that each of

the participants contribute in providing details of prospective eligible member names to be enumerated and work on bring-ing them into membership.

Mr. Chaterjie said that the primary goal of the Associa-tion would be, “to promote the awareness of the importance of records management and bring in standardization in the process through introduction of general guidelines that will help both the businesses and the customers.”

The Vision & Mission of the Association are as follows:-1. Bring Excellence2. How do we place our business is very important3. To formulate, benchmarks process, highlighting to the rest of the world4. Creating a mark and protec-tion5. To attract talent to the indus-tryParticipants concluded the name of the association as “Re-cords & Information Manage-ment Association of India”. It was proposed that a core group will be formed to work on the Bylaws of the Associa-tion. The proposed names were:1. Muthu Krishnan – Cameo Corporate Services2. Vivek Verma – Karvy Data Management3. Kamal Doctor – OEC Records Management4. Kumud Chopra – PS Bedi Group5. Carl Cooper – Safe House

Two options were decided upon to register for the associa-tion. The first was registering as a trust; and, the second was, reg-istering under Section 25 of the Companies Act.

Three types of memberships and the respective fees for each category was finalized – Charter, Life Membership and Associate Membership. After much debate, `75,000 was finally fixed as the Entrance/Joining Fee. The Associ-ation is yet to decide the Annual Membership Fees. It will be de-cided once the bylaws are made.

Mr. Chaterjie said, “More than 15 plus companies in the records and information man-agement spectrum showed in-terest in becoming founding members. The exact number will be confirmed once the body has been officially formed and registrations accepted.”

The association will be affili-ated to PRISM and/or ARMA.

Mr. Chaterjie said, “At this stage, RIMAI will work for the benefit of Indian companies and supporting Indian custom-ers and hence affiliation from PRISM and/or ARMA is not at the top of its priority list. However, the same will be considered after the association has been formed and some of the key activities are set to motion.”

The framework of the as-sociation was decided upon. It was also unanimously decided that the Board Structure would be expanded as and when re-

quired in future. It was decid-ed that an Interim Board be formed through nominations to conduct the affairs of the proposed Association till the formation of the Association and conducting of the EGM to elect the First Board.

The Interim Board is yet to decide on the location of the reg-istered office of the Association.

Mr. Chaterjie said, “In terms of conceptualization, the first meeting met its objectives. However, once the action plan is put into motion, the same will generate more interest and enthusiasm.”

Karunakar RaiNational Head - Sales and Business Setup, IL&FS Trust

industry, process industry and energy/infrastructure. The Di-vision addresses key customer requirements in terms of pro-ductivity, energy efficiency and reliability.

Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly pro-duction, transportation and building technologies. Biresh-war Roy, General Manager, Head Large Drives, Siemens, said, “It’s not only about saving energy. When you save energy, you save money.”

CONTINUED frOm PAGE 5 CONTINUED frOm PAGE 5

8 September 16—30, 2011 www.logisticsweek.com

Lowdown On Major PortspoRtS UpDAteS

In this section LW will provide the latest in ports and shipping news and a status on how the major ports have fared this fortnight.

antwerp expects more n Sep 2: The Port of Antwerp ex-pects a 10 percent growth in car-go volume from India. Antwerp Port specializes in handling break-bulk and project cargo as also chemicals and petrochemi-cals. Exporters from Nagpur, Ludhiana, Tuticorin and Pune prefer Antwerp to other ports as the overall cost of reaching the goods to the fi nal destination, works out cheaper.

judicial Commission opposedn Sep 8: Major port and dock workers federations have op-posed the Shipping Ministry’s decision on the appointment of Judicial Commission for the revision of wages and other re-

lated service conditions for port and dock workers to be given effect from January 1, 2012. Instead of settling the issue of wage revision through Bipartite Wage Negotiating Committee (BWNC) as per the practice, the decision for forming the Judicial Commission was offi cially com-municated to the labor federa-tions by Indian Ports association on September 5, created furore among the unions.

no Port Project awardedn Sep 9: The shipping ministry has failed to award a single port project out of a planned 24 this year, with a total outlay of ̀ 17,000 crore. Slackened ministerial be-haviors are blamed for the delay

in approvals. Half the projects to be bidded out are carryovers from the past, valued at around `13,000 crore. These include a 2009-10 plan to create a mega container terminal at Chennai port costing `3,686 crore and a mechanized berth at Vishakhap-atnam for `218 crore.

govt allots `16K Cr for Ports n Sep 15: The government plans to award 23 projects, entailing investment `16,700 crore, under the PPP model in FY12. Current-ly, total capacity of the 13 major ports is about 640 million ton. The combined capacity of the major ports and about 200 mi-nor ports reached 1,095 million ton in March 31, this year.

Coal stocks idle at Portsn Sep 15: Some of India’s im-porters reported that over 12 million ton of thermal coal are stockpiled at India’s ports, of which 7-8 million were not sold. Other importers were struggling to sell the coal. In-dia is a key and rapidly-grow-ing coal importer, expected to bring in 67 million ton in 2011, rising to 100 million by 2015.

Port investment remittedn Sep 16: The shipping ministry has deferred its disinvestment plan for Ennore Port, Cochin Shipyard and Dredging Corpo-ration of India (DCI) because of uncertain and volatile market condition. The fi nance ministry

has set up a disinvestment target of `40,000 crore for the current fi scal. Government has approved disinvestment in ONGC, SAIL, HCL and NBCC, but it could mop up only `1,162 crore.

toxic ship refused at Portn Sep 19: Chinese toxic ship MV Asia Union arrived in Chit-tagong early on September 19 for dismantling and has been asked to stay off the port as it is imported illegally. The im-porters did not apply for NOC prior to importing in India. It reportedly possesses hazardous substances including asbestos, toxic paints and chemical resi-dues, which have adverse ef-fects on the environment.

Port Traffi c This FortnightPort of ChennaiThe port handled an average of 4,448 TEU of con-tainer per day last fortnight. There was a drop in quantity of container handled by 26 percent this fortnight.

Port of CochinThe port handled a total of 4,68,582 ton of cargo. Comparing to this fortnight there is a rise in the percentage of cargo handled by 9 percent.

Port of Ennore:The port handled an average of 1,22,457 ton of cargo per day in the last fortnight recording a steep rise in the percentage of cargo handled by 29 percent, compared to this fortnight.

Port of JNPTThe port handled an average of 10,732 TEU of con-tainer per day, last fortnight. The percentage of container handled dropped by nearly 3 percent in the last 15 days.

Port of Kolkata:The port handled a total of 8,36,106 ton of cargo in the last fortnight, this time showing a rise by 6 percent.

Port of MumbaiThe port handled an average of 24,028 ton per day past fortnight. There is a surge in quantity of cargo handled by 77 percent. (The data for this fortnight was extrapolated from fi ve days’ data because numbers were not available for rest of the days. The sharp skew shown in the table here could be because of the surge in port traffi c on the recorded days).

Port of ParadipThe port handled a total 21,84,271 ton of cargo this fortnight as compared to 14,69,105 ton last time, recording a steep rise by 32 percent.

Port of TuticorinThe port handled on an average 74,500 ton of cargo per day in the last fortnight. The quantity of cargo handled this fortnight plummeted by 19 percent.

PORT OF CHENNAI

Total cargo handled 1290000 T

Total container handled 31473 TEU

PORT OF COCHIN

Total cargo handled 281932 T

Total container handled 777 TEU

PORT OF ENNORE

Total cargo handled 2091427 T

PORT OF JNPT

Total container handled 91365 TEU

PORT OF KOLKATA

Total cargo handled 1037340 T

PORT OF PARADIP

Total cargo handled 1543077 T

PORT OF TUTICORIN

Total cargo handled 565109 T

PORT OF MUMBAI

Total cargo handled 155024 T

Total container handled 285 TEU

(Data is relevant to days when information was updated on port website)

9September 16—30, 2011 www.logisticsweek.com

Rebooting A Few Systems

Beiersdorf AG is a group of globally active companies fo-cused on the development, manufacture and worldwide distribution of high-quality skin care and beauty prod-ucts, some of the brands being Eucerin, La Prairie, Labello, 8x4 and Hansaplast, Beiers-dorf is Germany’s largest co smetics company and one of its brands, Nivea, is among the world’s best known brands amongst skin care and beauty products.

Beiersdorf entered India in 2005 to conduct its manu-facturing and distribution for the Indian market locally. In the last fi ve years, Beiersdorf’s business in India has demon-strated strong growth adding to volume and distribution complexity. Agility Logistics has been their logistics service provider since the beginning and have been a partner in this

LSp CASe StUDY: AGILItY LoGIStICS

growth one of the indicators of which is the growth in the number of invoices processed annually from 11,000 in 2009 to 23,000 currently.

The ProblemNivea wanted pan India ware-housing operations & second-ary distribution with mini-mum human intervention. The idea was to have online, sys-tem-driven operations on real time basis where the criteria for selection would be batch wise, manufacturing date wise picking on FIFO basis. Given the large SKU base and trans-actions close to 23,000 per an-num where the product is a cosmetic direct applied on hu-man skin, the challenge was enormous. Also, the require-ment of batch/lot traceability, which is essential in case of recalling a particular batch/lot already distributed across India to various distributors added to the complexity.

This was further compound-

ed by month-end skews, where the last 4 days of any month accounted for 30 percent of monthly volume, as well as the seasonality of the product.

A Fitting SolutionTo provide an optimum solution to the client, Agility Logistics proposed to merge two systems viz. the client’s SAP and Agil-ity’s Warehouse Management System (WMS) via an Electronic Data Interchange (a paperless transaction process in which two systems transact data elec-tronically using various proto-cols), which took around three months of rigorous user accept-ance procedures).

Also, signifi cant customiza-tion of WMS was undertaken to achieve the desired results. The entire development was done in-house. For each SKU, a best fi t was arrived at based on com-plex volumetric calculations. This also helped in designing a mathematical tool to arrive at a pallet-wise calculation at each

location thus completely doing away with the need for physical counting of pallets for billing. To ensure effi cient usage, users from both ends were trained on the new system. There was ini-tial skepticism which quickly gave way to acceptance once the results were found to be in line with expectations.

Reducing ErrorsThe success of the project lay in its simplicity and reduction in repeated manual entries which brought down the error rate to near nil. The speed of the trans-action increased tremendously. The rate of processing put away & pick went up by almost 70 percent as errors were almost zero and two systems were working in tandem in a seam-less environment.

With advance shipment no-tice and pre-alert mails, the storage/space was effi ciently managed since the warehouse had a clear plan of the number of incoming pallets which also

meant that the cases of storage area spill over seldom occurred. Since the warehouse locations are mapped in the system, this has resulted in effi cient put away and pick. These measures reduced the turnaround time of put and pick and hence con-tributed to faster operational output. Clear visibility of inven-tory has led to less out-of-stock problems and better use of warehouse space. Inventory ac-curacy between physical & sys-tem stock now stood at almost 100 percent.

In addition, the robust Man-agement Information System (MIS) automatically generated emails to all stakeholders at predetermined intervals and offered a complete visibility of inventory across India, thus en-abling an effi cient product and distribution planning support-ing strong sales growth.

Tom JosephCEO, Agility Logistics

India and China have agreed to work towards signing of a Memorandum of Understanding (MoU) in the areas of Road Transport and High-ways, said an Indian government press release is-sued on September 16. Under the proposed MoU, both sides would seek to enhance cooperation in highway construction, exchange of technology and investments in the sector. According to the release, this was agreed to during the meeting between Kamal Nath, Minister for Road Trans-port and Highways and Li Shenglin, Minister of Transport, China at Beijing on September 15.

Nath was quoted in the note as saying that India has embarked on a massive national high-way development program under which it is proposed to construct 7,000 km of national high-ways every year over the next few years. The ambitious targets set in the program provided huge opportunities to the Chinese construction companies as also the Chinese financial institu-tions to enhance their engagement with India, said the note. Nath also said that the preferred mode of highway development in India is Public Private Partnership. 60 perceent of the national highways would be developed under the BOT (Built-Operate-Transfer) Toll mode, while anoth-er 25 percent would be taken up on BOT (Annu-ity) basis. Already, several Chinese companies are participating in the National Highway Develop-ment Project of India.

China has over the past decade made rapid progress in the infrastructure sector, particularly highway development. Li Shenglin said that pres-ently, around 35,000 km of national highways is under construction in China of which 10,000 km is likely to be completed this year.

Earlier in the course of the interactions with China’s government representatives, Nath met Lou Jiwei, Chairman, China Investment Corpora-tion (CIC) and Dai Xianglong, Chairman of Nation-al Social Security Fund (NSSF) and apprised them

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tincidunt in felis. Nulla sit amet orci mi. Nam bibendum augue et dolor fringilla sit amet viverra est pharetra. Curabitur eu nulla ri-sus, et consequat diam. Sed varius turpis tempor est consectetur pulvinar. Integer rutrum cursus magna sit amet luctus. Fusce ele-mentum feugiat nibh quis facilisis. Vivamus nulla velit, imperdiet sed vulputate et, consequat non libero. Praesent ut justo metus. Curabitur accumsan, neque viverra dictum pharetra, lorem risus aliquet risus, ac interdum libero enim eget dolor. Donec tristique gravida libero ac bibendum. Nunc arcu dui, rhoncus eu pretium egestas, posuere a lectus. Aliquam erat volutpat. Donec consequat, arcu a pharetra bibendum, diam orci pulvinar elit, at ullamcorpsapien risus, vitae lobortis massa. Proin vel fringilla urna. Fusce aliquet porttitor ultrices. Integer rutrum cursus magna sit amet luctus. Fusce eleaesent ut justo metus. Curabitur accumsan, neque viver-ra dictum pharetra, lorem risus aliquet risus, ac interdum libero enim eget dolor. Donec tristique gravida libero ac bibendum. Inte-ger rutrum cursus magna sit amet luctus. Fusce elementum feugiat nibh quis facilisis. Vivamus nulla velit, imperdiet sed vulputate ac interdum libero enim eget dolor. Donec tristique gravida libero ac bibendum.

Jacob Joseph Puthenparambiljacob@logisticsweek.com

The two emerging super-economies have agreed to explore ar-eas of cooporation in the road transport and highways sector

News DeskMumbai

UPS Connects Air and Ocean New Ocean Freight

InterviewEnvisaging India as Asia Auto Hub R Dinesh, JMD, TVS & Sons says India stands at the threshold of an aftermarket revolution

PAGE 4

In APAC, ME, USA and Europe

August 16–31, 2011

`25logisticsweek.com

India And China Looking to Be On The Same Road

PAGE 2

of the opportunities of investing in the highways sector of India and of the high re-turns that the sector promises to offer.

Xianglong mooted the idea of the set-ting up of an India-China Highways Invest-

ment Forum for investors, developers and construction companies which will provide a platform for the policy makers, financial experts and the business leaders to work closely towards enhancing project.

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A low-down on developments in sur-face transport last fortnight.

siX laning of seCtions of nh n The Cabinet Committee on Infrastructure has approved the implementation of the project for development of six laning of Kishangarh-Udaipur-Ahmedabad section on Nation-al Highway NH-79A, NH-79, NH-76 and NH8 in Rajasthan and Gujarat under NHDP Phase V on DBFOT basis in BOT (Toll) mode of delivery. The total project cost estimated of the project for implementing under DBFOT pattern is `6013.70 crore, out of which `626.40 crore will be for the land acquisition, R&R and preconstruction purposes. The project when completed will reduce the time and cost of travel and also increase the em-ployment potential to the local labourers for the project activi-ties and development of tour-ism activities and would boost economic activities in the State of Gujarat and Rajasthan.

railways’ safety review Committeen The Minister of Railways, Shri Dinesh Trivedi, at a press con-ference on September 16, 2011, announced the constitution of a High Level Safety Review Com-mittee. The committee compris-ing of eminent persons/experts in technical and high end tech-nology related fi elds with experi-

Bridging The Gap

ence and expertise in manag-ing innovation in technology and change will also provide a valuable independent outsid-ers’ view with respect to system and protocols.

railway freight revenue goes uPn The Railways have gener-ated `27024.90 crore of revenue earnings from commodity-wise freight traffi c during April-August 2011 as compared to `24547.05 crore during the cor-responding period last year, registering an increase of 10.09 percent. Railways carried 389.07 million tonnes of commodity-wise freight traffi c during April-August 2011 as compared to 366.74 million tonnes carried during the corresponding pe-riod last year, registering an in-crease of 3.78 percent. The Net Tonne Kilo Meters (NTKM) went up from 257813 million during April-August 2010 to 243779 million during April-August 2011, showing an increase of 4.10 percent. Out of the total earnings of `5204.26 crore from commodity-wise freight traf-fi c during the month of August 2011, `2038.11 crore came from transportation of 34.20 mil-lion tonnes of coal, followed by `740.15 crore from 8.94 million tonnes of iron ore for exports,

steel plants and for other do-mestic user, `492.99 crore from 8.53 million tonnes of cement, `324.73 crore from 3.58 million tonnes of foodgrains, `256.30 crore from 3.30 million tonnes of petroleum oil and lubricant (POL), `317.06 crore from 3.02 million tonnes of Pig iron and fi nished steel from steel plants and other points, `322.45 crore from 4.43 million tonnes of fer-tilizers, `75.75 crore from 1.15 million tonnes of raw material for steel plants except iron ore, `276.93 crore from 3.11 million tonnes by container service and `359.79 crore from 5.49 million tonnes of other goods.

rise in railway revenue earnings n The total approximate earn-ings of Indian Railways on origi-nating basis during the period from September 1-10, 2011, was `2510.31 crore, as compared to `2297.72 crore during the same period last year, registering an increase of 9.25 percent. The total goods earnings have gone up from `1501.17 crore during the period from September 1-10, 2010 to `1624.59 crore during September 1-10, 2011, showing an increase of 8.22 percent. The total passenger revenue earn-ings during the period Sep-tember 1-10 2011 was `796.99

THE LW CrOSSWOrD

Across:1 Car with a fl at platform and sides three to four feet high7. Transportation of materials and freight on a local basis8. In distribution, the trading partner or reseller10. Exempt for hire air carrier that publishes a time schedule on specifi c routes11. Enclosed rail car typically 40 to 50 feet long15. Obstacles or planned control that limits throughput17. Movable property, merchandise or wares20. A computer term referring to a system of numerical notation22. Automated equipment used for picking small, high-volume parts24. Flat-bottomed boat designed for cross-harbor or inland waterway freight25. Data stored in computer readable form28. Determining the correct transportation charges

Down:2. A person or fi rm that grants a lease3. Material that will contribute to a fi nished product4. An intermediary between the shipper and the carrier5. Physical facilities available to meet the product or service needs of

customers6. Physical characteristics of a commodity measuring its mass per unit

volume or pounds per cubic foot9. Sum of the value of all order received12. Carrier charges and fees applied when rail freight cars and ships are

retained beyond a specifi c loading or unloading time13. A box, typically 10 to 40 feet long, primarily used for ocean freight

shipments14. A person or fi rm to whom a lease is granted16. Light assembly of components or parts into defi ned units18. A statement or formula, based upon experience or observation rather

than on deduction or theory19. A type of truck trailer that consists of a fl oor and no enclosure21. Cargo-carrying vehicle used primarily by inland water carriers23. The cargo carried in a transportation vehicle26. A computer term describing rate of transmission over a channel or circuit

AnswersAcross1. Gondola 2. Drayage 8. Customer 10. Commuter 11. Boxcar 15. Bottleneck 17. Goods 20. Binary 22. Carousel 24. Lighter 25. Database 27. Exports 28. Auditing Down2. Lessor 3. Component 4. Broker 5. Capacity 6. Density 9. Bookings 12. Detention 13. Container 14. Lessee 16. Kitting 18. Empirical 19. Flatbed 21. Barge 23. Lading 26. Baud

TRUCK FREIGHT RATES*Following are the truck freight rates (in `per tonne) from metros to metros

orIgIn DesTInaTIons

New Delhi Kolkata Mumbai Chennai Bangalore

New Delhi -- 2,550 1,850 3,600 3,400

Kolkata 1,950 -- 2,700 1,850 2,300

Mumbai 2,900 4,350 -- 2,550 2,050

Chennai 3,500 3,000 2,150 -- 900

Bangalore 3,300 3,500 1,650 800 --

*Rates are indicative Source: Trimurti Cargo Movers Pvt. Ltd.

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11September 16—30, 2011 www.logisticsweek.com

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crore compared to `705.87 crore during the same period last year, reflecting an increase of 12.91 percent. The revenue earnings from other coaching amounted to ̀ 67.64 crore during this period compared to `65.92 crore during the same period last year, show-ing an increase of 2.61 percent.

ConferenCe on PubliC Private PartnershiP n A Conference on “Public Pri-vate Partnership (PPP) in Nation-al Highways: Challenges and Opportunities” organized by the Ministry of Road Transport & Highways with the assistance of the Planning Commission concluded on September 12, 2011. The one-day conference was inaugurated by the Prime Minister, Dr. Manmohan Singh. The Union Minister for Road Transport & Highways, Dr. C. P. Joshi gave a broad overview of the “Vision Ahead” of the Min-istry. The Deputy Chairman of Planning Commission, Dr. Mon-tek Singh Ahluwalia delivered the key-note address. The Minis-ters of State for RT&H, Shri Jitin Prasada and Dr. Tusharbhai A. Choudhary also addressed the inaugural session.

highway DeveloPment Program n Prime Minister, Dr. Manmo-han Singh has said that good

roads are essential element of infrastructure for providing industry and agriculture with the connectivity to markets for growth in production and trade, and more generally for improving the quality of life of citizens. Delivering the inaugu-ral address at the “Conference on Public Private Partnership in National Highways : Chal-lenges & Opportunities” organ-ized by the Ministry of Road Transport and Highways with the assistance of the Planning Commission, he said that they are crucial not only for acceler-ating growth rate, but also for making whole growth process more socially and economically inclusive. Dr. Manmohan Singh said that financing an ambi-tious highways programme will no doubt require substan-tial resources. Some parts of the network can only be de-veloped through public invest-ment. There are however areas where private investment can be invited, based on affordable user charges with some capi-tal subsidy as necessary. The Twelfth Plan strategy calls for exploring the scope for such Public Private Partnership as much as possible.

railways freight transfer n A Indian Railways have car-

ried 389.07 million tonnes of revenue earning freight traffic during April-August 2011. The freight carried shows an in-crease of 22.36 million tonnes over the freight traffic of 366.71 million tonnes actually car-ried during the corresponding period last year, registering an increase of 6.10 percent. During the month of August 2011, the revenue earning freight traffic carried by Indian Railways was 75.75 million tonnes. There is an increase of 1.55 million tonnes over the actual freight traffic of 74.20 million tonnes carried by the Indian Railways during the same period last year, showing an increase of 2.09 percent.or-ganized by the Ministry of Road Transport & Highways with the assistance of the Planning Com-mission concluded on Septem-ber 12, 2011.

asian highways ProjeCtn India signed the Inter-Gov-ernmental Agreement on Asian Highway Network during the 60th Annual Session of the United Nations Economic and Social Commission for Asia and Pacific (UNESCAP), held in April, 2004. The agreement is for coordinated development of the highway routes falling on the Asian Highway Network in each country to a minimum acceptable standard within the

framework of their national programmes, envisaged in turn to develop international tourism, trade, transport and commerce. However, no spe-cific time frame for completion of works has been stipulated in the Agreement. The Asian Highways (AH) 1 and AH 2 pass-es through the North-Eastern States of India following the Na-tional Highway stretches from the Indo-Myanmar border at Moreh in the State of Manipur via Imphal-Kohima(Nagaland)-D i m a p u r - N a g a o n - J o r a b a t (Assam)-Shillong-Dawki- Tama-bil upto Indo-Bangaldesh bor-der in the State of Meghalaya having a length of about 740 km.

national transPort De-veloPment PoliCy rePortn The Government had set up National Transport Develop-ment Policy Committee (NTD-PC) under the Chairmanship of Dr. Rakesh Mohan on 11th Feb-ruary, 2010, with the main ob-jective of recommending a long term National Transport Policy that would facilitate overall ef-ficiency in the economy while minimizing energy consump-tion and environmental pollu-tion, to provide an integrated and sustainable transport sys-tem to encourage competitive pricing and co-ordination be-

tween the alternative modes of transport. The NTDPC also, in-ter-alia, constituted a Working Group on Roads in July, 2010. The NTDPC has not yet finalized its report.

restruCturing of nhain Ministry of Road Transport & Highways submitted a Note to the Cabinet in 2007 for restruc-turing of National Highways Au-thority of India (NHAI). The Cab-inet approval included amended procedure for selection of Chair-man, NHAI, by a Search Com-mittee headed by Cabinet Sec-retary, increase in number of full-time Members of NHAI Board from 5 to 6 and part-time Members from 4 to 6 (including experts who would be from non-Government sector), creation of additional CGM posts (15 Nos. for technical and 11 Nos. for non technical) over and above the existing posts, creation of various cells for improvement in process in technical areas, and amendment in NHAI Act, 1988 to effect the revised com-position of NHAI Board. While the technical recommendations have been operationalized, for operationalising appointment of full-time and part-time mem-bers, a proposal to amend sec-tion 3(3) of NHAI Act, 1988 has been submitted for approval of Cabinet on 02.09.2011.

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